How global turmoil will affect real estate in Canada

From the violent protests in the Middle East and North Africa to the earthquake and unfolding nuclear crisis in Japan, global turmoil is going to "directly affect specific real estate markets across the country," argues real estate expert Don Campbell.

"Our country is uniquely positioned to provide the world with the three 'Fs' - food, fuel and fertilizer - and our supply chain is safe. The inflation in these commodities will drive prices upwards and boost jobs into key areas of the country, which in turn will lead to migration of people to those regions, driving real estate and rental demand upwards. Price increases will follow," he says.

Mr. Campbell is the president of Real Estate Investment Network and the author of the best-selling Canadian real estate book Real Estate Investing in Canada.

Mr. Campbell was here to take your questions on the impact of recent international events on Canadian real estate markets.

What does this mean to Edmonton, Alberta real estate?

A favourite quote from Don's interview was, "[National Averages are] like taking the temperature of everyone in a hospital, then averaging that number to determine the health of every patient."

This is a very accurate analogy, and based on the resources based economy in Alberta, specifically Oil & Gas, the impact on Alberta will be more specific here. These changes are ones that often take 6 to 18 months to start feeling affects, but as of the first quarter of 2011, many of our investment clients are finding the rental market to be tightening up and vacancies dwindling. The first impact will be to the benefit of landlords, so now is the time to increase and reposition your investment real estate in preparation. Within 1-2 years of that, so 2013-2014 we will begin to see strong demand increases on resale and new housing, causing average price increases given current levels of inventory and new construction activity.

Wondering what this means to you and your situation? Contact the Preferred Group with RE/MAX River City today for no commitment, and no hassles conversation on what you should do in terms of real estate. 780-701-2626 and ask for John Carter or Anu Khullar, or email us on our contact page.

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Data last Updated: 2018-12-17 at 06:29:18 MST America/EdmontonThis site's content is the responsibility of Anu Khullar, licensed REALTOR® in the Province of Alberta.

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